AGENDA DATE: 1/15/2025
TITLE:
Title
Public Hearing to Consider the Adoption of an Ordinance to Modify Real Estate Tax Relief for Elderly and Disabled Persons
BODY
SUBJECT/PROPOSAL/REQUEST: Public hearing to consider the adoption of an Ordinance to amend County Code Chapter 15, Taxation, Article 7, Real Property Tax, by modifying the criteria for real estate tax relief for elderly and disabled persons.
ITEM TYPE: Regular Action Item
STAFF CONTACT(S): Richardson, Herrick, Bessette, Sumner, Bowman, Usher, Matheny, Lane, Wilson
PRESENTER (S): Jennifer Matheny
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Staff is recommending expansion of the current program for Real Estate Tax Relief for Elderly and Disabled Persons by increasing the income limit to align with the current value for the US Department of Housing & Urban Development Area Median Income (AMI) Limits, using the value for 80% AMI for a family of four in Albemarle County, as well as the net combined financial worth limit. Under Virginia Code § 58.1-3210, the County has authority to modify the qualifying criteria. The Board of Supervisors expressed support for this approach after reviewing staff’s analysis at the November 20, 2024, Board meeting, and scheduled this public hearing to consider adoption of an ordinance.
STRATEGIC PLAN: Mission - To enhance the well-being and quality of life for all community members through the provision of the highest level of public service consistent with the prudent use of public funds.
DISCUSSION: Albemarle County Code Chapter 15, Article 7, Division 2, Real Property Tax Exemption for Certain Elderly and Disabled Persons, describes the County’s real property tax relief program for elderly and disabled persons. Based on direction from the Board of Supervisor’s November 20, 2024 meeting, the proposed ordinance (Attachment A) would modify the current program criteria with the following:
- Increase the net income limit from $88,800 to $97,650
- Increase the net financial worth limit from $305,000 to $312,000
- Modify the three relief percentage brackets from $0 to $48,825 for 100% relief, $48,826 to $73,238 for 75% relief, and $73,239 to $97,650 for 50% relief.
The change would be effective for Tax Year 2025, which began on January 1, 2025.
BUDGET IMPACT: The proposed modification to the Real Estate Tax Relief for Elderly and Disabled Persons program would decrease collectible tax revenues. For FY 26, the budgetary impact of increasing the income and net worth limits is estimated to be $120,000 and if approved, would be incorporated into the County Executive’s FY 26 Recommended Budget.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached proposed ordinance (Attachment A).
ATTACHMENTS:
A - Ordinance to Modify Real Estate Tax Relief for Elderly and Disabled Persons